Illinois lottery taxes: 4.95% on every dollar
Rate checked on November 3, 2026 against the sources listed at the end of this page.
Illinois has a flat income tax of 4.95%, in effect since July 1, 2017 and used in the state's 2026 withholding tables. Lottery winnings are taxed at that same rate, whether you win $1,000 or a billion-dollar jackpot.
What sets Illinois apart is how early withholding starts. Most states start withholding at $5,000, in line with the federal rule. Illinois starts at $1,000.
Take-home pay on a lump-sum prize in Illinois
The table applies the top federal rate of 37% plus 4.95% Illinois tax. Amounts are the cash (lump-sum) value you receive, not the advertised annuity jackpot.
| Cash prize | Federal (37%) | State | You keep |
|---|---|---|---|
| $1.00M | −$370,000 | −$49,500 | $580,500 |
| $10.00M | −$3.70M | −$495,000 | $5.80M |
| $100.00M | −$37.00M | −$4.95M | $58.05M |
| $500.00M | −$185.00M | −$24.75M | $290.25M |
| $1.00B | −$370.00M | −$49.50M | $580.50M |
Federal figure is the total owed at the top bracket. At claim time only 24% is withheld; the rest is due when you file. Smaller prizes can fall into lower brackets, so the real federal bill may be less.
Withholding starts at $1,000
The Illinois Department of Revenue requires state income tax to be withheld from each single payment of Illinois lottery winnings of $1,000 or more. Shared tickets count as one payment: if a $1,000 prize is split among friends, withholding still applies even though each share is smaller.
Federal withholding of 24% starts above $5,000, so an Illinois prize of $2,000 to $5,000 can have state tax withheld but no federal tax withheld. You still owe federal tax on it when you file.
Residents and nonresidents
Illinois tells the lottery to withhold Illinois income tax for both residents and nonresidents. If you live in Indiana, Wisconsin, Iowa, Missouri or Kentucky and win with a ticket bought in Illinois, expect Illinois tax to be taken out when you claim. Your home state may tax the prize too, usually with a credit for the Illinois tax. Read ticket state vs home state.
How the bill adds up on a jackpot
Because the state rate is flat, the Illinois share is easy to estimate: 4.95% of the prize. The federal share is the hard part: 24% is withheld, but a jackpot is taxed at up to 37%, so set aside about 13% of the prize for the federal balance.
Neighbors at a glance
Among Illinois's neighbors, Kentucky, Indiana, Iowa, Missouri and Wisconsin are still being verified on this site. Check the every-state table for the latest status.
Common questions
What is the Illinois tax rate on lottery winnings?
4.95%, the state's flat individual income tax rate.
When does the Illinois Lottery withhold state tax?
On each single payment of $1,000 or more, for residents and nonresidents.
How much of a $100 million cash prize would I keep in Illinois?
About $58.05 million after 37% federal and 4.95% state tax.
Sources
- IRS Topic 419: Gambling income and losses
- IRS Instructions for Forms W-2G and 5754
- Illinois Department of Revenue: Income tax rates (4.95% since July 1, 2017)
- Illinois Department of Revenue: IL-700-T 2026 withholding tables (4.95%)
- Illinois Department of Revenue: Pub-130, withholding on lottery or gambling winnings